Piper Sandler Stays Neutral on Arista (ANET) Due to Valuation Concerns

Arista Networks Inc. (NYSE:ANET) is one of the best data center stocks to buy now. On August 6, Piper Sandler analyst James Fish raised his price target on Arista Networks Inc. (NYSE:ANET) to $143 from $89 but kept a Neutral rating. The move followed the company’s strong Q2 results, which beat expectations across the board.

Product billings were a particular standout, accelerating to more than 50% growth despite the company already operating at significant scale. Fish pointed to broad strength in demand, from AI buildouts to cloud providers refreshing networks to 400/800G, as well as steady enterprise spending.

The analyst continues to view Arista Networks Inc.’s (NYSE:ANET) long-term prospects positively but kept a Neutral rating due to valuation concerns. With the stock already rallying and trading close to past peak multiples, he sees little near-term upside unless growth stays stronger than expected.

Arista Networks Inc. (NYSE:ANET) specializes in data-driven, client-to-cloud networking solutions for large-scale AI, data center, campus, and routing environments.

While we acknowledge the potential of ANET to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than ANET and that has 100x upside potential, check out our report about this cheapest AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.